Morocco’s Emergence as a Global Automotive Industry Hub

Rash Ahmed
5 Min Read

Morocco’s automotive industry has rapidly transformed into a cornerstone of the nation’s economy, surpassing the phosphate sector in export revenues. With 70% of the world’s phosphate reserves, the Kingdom once relied heavily on this resource. However, a well-crafted strategy focusing on the automobile sector has positioned Morocco as Africa’s leader in car manufacturing and a competitive global player. The country now aims to generate $20 billion in vehicle exports by next year.

According to experts, Morocco’s ascent in this industry is not accidental but a result of deliberate policy measures and investments in infrastructure. Two major players, Renault and Stellantis, have spearheaded the nation’s automotive development. Local component production exceeds 65%, with over 260 companies supporting the sector, which employs approximately 230,000 workers. Production capacity, currently at 700,000 cars per year, is projected to reach one million soon.

The automotive sector in Morocco began in 1959 with the establishment of SOMACA (Moroccan Automotive Manufacturing Company) in Casablanca. Initially assembling Fiat and Simca models, SOMACA transitioned through phases of government ownership to complete acquisition by Renault in 2005. Under Carlos Ghosn’s leadership, Renault built its largest factory in Africa in Tangier, a site strategically located near Europe. This facility now plays a crucial role in manufacturing models such as the Dacia Sandero, the best-selling car to individuals in Europe since 2017.

The entrance of Stellantis, formerly known as PSA, marked another significant milestone. The company’s factory in Kenitra, operational since 2015, has an annual capacity of 200,000 cars, with investments to double that figure in the coming years. Combined with Renault’s facilities, Morocco has become a major industrial platform, with Renault’s Moroccan factories accounting for 17% of the group’s global sales in 2023.

Infrastructure plays a pivotal role in Morocco’s success. Henri Louis Vidi, a senior fellow at the Policy Center for the New South, emphasizes that world-class ports, railways, and industrial zones have created an investment-friendly environment. Additionally, tax incentives and access to clean energy enhance Morocco’s appeal as a hub for global manufacturers.

The industry’s progression is also a reflection of Morocco’s forward-looking vision. Ryad Mezzour, Morocco’s Minister of Industry and Trade, predicts that automotive exports could grow sixfold to $90 billion annually over the next four years. This ambitious target will be driven by integrating electric vehicle batteries into the country’s manufacturing ecosystem.

Prime Minister Aziz Akhannouch credits King Mohammed VI’s leadership for this industrial renaissance. Speaking at the National Industry Day in 2023, Akhannouch highlighted Morocco’s rise as Africa’s leading producer of passenger cars and its role as a top exporter of thermal vehicles to the European Union. In 2023 alone, Morocco manufactured over 570,000 cars—a pace equivalent to producing one car every minute.

The sector’s development has relied heavily on fostering local integration. Renault alone sourced over $2 billion in parts from Moroccan companies in 2023, with expectations to exceed €3 billion by the end of the decade. The push for local integration aligns with the country’s strategy to integrate advanced technologies such as electric and hybrid cars, further cementing its global competitiveness.

The economic benefits of Morocco’s automotive industry are undeniable. Exports reached 145.9 billion dirhams ($14.4 billion) in November 2023, a 6.7% year-on-year increase. Projections for the coming years indicate steady growth, fueled by continuous advancements in manufacturing capacity, technology integration, and infrastructure development.

Morocco’s strategic location, bridging Africa and Europe, remains a critical factor in its success. The country has leveraged this advantage, not only to access European markets but also to attract international investors seeking a stable and business-friendly environment.

As Morocco continues to innovate and expand, it stands as a model for how strategic planning, infrastructure investment, and public-private collaboration can transform an economy. By integrating electric and hybrid technologies into its automotive sector, the Kingdom is not just shaping its future but also setting a benchmark for Africa’s industrialization.

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Rash Ahmed
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